Deal syndication platform LetsVenture has rolled out its employee stock ownership plans (Esops) management platform, MyStartupEquity, with an aim to digitize and secure important and sensitive information of the company.
ESOP (Employee Stock Option Plan) is a great way of rewarding and retaining top talent for Startups.. Options are granted through a letter of offer given by the company to its employee stating that he/she have the right to purchase 1000 shares of the company but it can be exercised (purchased) only after certain Vesting criteria is met.
“The platform will bring efficiency and accountability to how companies manage their Esops lifecycle, right from granting them to facilitating regular liquidity for employees. Though thousands of employees have accepted Esops as a core part of their compensation, they are unclear about its true value,” said Ganesh Nayak, director of LetsVenture.
LetsVenture is India's largest platform for startup funding. In the last 6 years, the platform has enabled 190 fundraises worth USD 81.5 million.
“The way the startup founders are aligning is that they will help employees to liquidate 5%-10% of their vested Esops every 6-12 months, which is a very balanced approach…It helps employees to actually value them as actual currency, rather than just something on paper, and prevents them from losing out on future financial benefits,” Nayak said.
MyStartupEquity has launched the #LetsTalkESOP campaign to rally together employees, founders, CFOs, HR and investors to engage in a sustained dialogue on ESOPs and co-create best practises which can benefit the startup ecosystem.
Backed by Accel, Chiratae Ventures, Nandan Nilekani, Sharad Sharma, Anupam Mittal, Ratan Tata, Mohandas Pai, we aim to bring transparency and efficiency in the Indian Startup ecosystem.